The price of Stellar’s XLM token is surging in the market today, with the price chart now forming a classical uptrend that could take the token to $0.138 and potentially higher.
The clear uptrend in the XLM price in visible on the daily chart, which shows that the token bounced up after hitting an upwards pointing trendline yesterday. The bounce brought the price from $0.106 yesterday, up to a high of $0.120 – a rally of around 12% in a matter of 24 hours.
The strong rally over the past 24 hours came after XLM got rejected to the upside on September 23, when it attempted to cross the key $0.13 level, which has served as resistance on multiple occasions this year.
Looking more closely at some important technical indicators, the Relative Strength Index (RSI) is still in neutral territory on the daily chart. Zooming into the hourly chart, the RSI is also now neutral after reaching well into ‘overbought’ territory as the price spiked around 9 pm UTC on Thursday.
Other indicators, such as the popular Bollinger Bands, also show that price is now in an area that can be considered more or less neutral. As a result, any sell-off below the established trendline appears unlikely at the moment.
Meanwhile, a possible fundamental explanation for the rally could be the excitement that is building around XRP. XRP is widely seen as a rival to XLM, given that the two tokens are both in the cross-border settlement niche.
As reported by Cryptonews.com, XRP has seen a strong rally over the past 24 hours, fueled by hopes that its legal battle with the SEC could soon end on terms favorable to the company. A favorable outcome here would most likely also be good for other companies operating in the same niche as Ripple.
As of 13:10 UTC, XLM traded at $0.113, up 5.4% for the past 24 hours. The strong daily gain was enough to position the token as today’s fifth-best performer among the top 100 cryptoassets, behind only LEO, XRP, MKR, and LUNC.
On a 7-day basis, the token remained down by just under 7% at press time.
Stellar and its native XLM token were founded by former Ripple director Jed McCaleb. The token has generally shown poor performance since a massive rally in 2017 and has never recovered its all-time high from back then.